Small Business Committee Ranking Member Edward J. Markey, Commerce Committee Ranking Member Maria Cantwell, and their Democratic colleagues have expressed concern over the Trump administration's actions regarding minority business support programs. They have written to U.S. Small Business Administrator Kelly Loeffler and Commerce Secretary Howard Lutnick seeking explanations for the administration's approach to programs such as the Minority Business Development Agency (MBDA) and small business contracting initiatives.
The letter, supported by Senators Martin Heinrich, Mazie Hirono, Adam Schiff, Ben Ray Luján, John Hickenlooper, Jacky Rosen, Tammy Baldwin, Cory Booker, and Lisa Blunt Rochester, questions recent executive decisions impacting these programs. "On March 14, 2025," the lawmakers note in their letter, "President Trump issued an executive order directing the MBDA and several other agencies to reduce their functions to the minimum amount required by law." The senators highlighted subsequent layoffs and contract cancellations at the MBDA that were temporarily halted by a court injunction.
The senators argue that these measures are detrimental to minority-owned businesses which play a significant role in the economy. "The Trump administration’s war on targeted federal programs is already hurting minority and underserved small businesses," they stated. They emphasize that these businesses contribute significantly to employment and revenue generation across various sectors.
The lawmakers have requested detailed responses from the administration by July 10, 2025. Their inquiries focus on how congressionally appropriated funds will be used in line with statutory requirements and how staffing decisions affecting MBDA programs were made. Additionally, they seek clarity on plans for meeting existing small disadvantaged business (SDB) contracting goals and request justifications for proposed program eliminations.
Markey and Cantwell have been vocal about what they describe as Republican attacks on the MBDA. They have called for investigations into whether actions taken by officials violated congressional directives or undermined the agency's mandate.
